The Critical Investing Workshop Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Voltaire who wrote (10664)	4/3/2000 5:23:00 PM
From: Dealer	Read Replies (1) of 35685

Stocks down, Options down more! My Solution Today! I was fortunate enough to sell 1800 shares of (RNWK) at 57 1/2 and was working on an order to buy 50 contracts of August 70 calls at 10 1/2 (almost 5 months out, long enough because I will sell them this month at expiration) I will then buy back my stock and sell the cover calls for May. Anyway the stock moved lower to 53 1/2 and I got the August 70 calls at 9 3/8. This gives me control of 5000 shares of stock for $46,875.00. The delta is right at .50 (approx. percentage you receive if stock moves $1) Essentially I am controlling 1 1/2 times the stock...plus I have after clearing margin on the 1800 original share margin about $5,000.00 in my account. Oh! No! I think I gotta do it again tomorrow! dealer

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next